Al Tawfeek Company for Investments is planning to launch two new funds in early 1996, one of which will invest in the Far East and other to focus on developed markets.
Documentation is now being drawn up for the Malaysia Venture Capital Fund to be launched in the next three-four months. Funds will be invested in unlisted companies, which have good prospects for listing on the local stock market. Al Tawfeek will appoint local investment managers.
This is expected to be followed by the International Islamic Equity Fund, which is also in the documentation stage. This fund will focus on securities in the US, European and Japanese markets, but will be invested according to Sharia law. Al Tawfeek is now in negotiations with a US fund manager to act as investment advisor.
Al Tawfeek is an Islamic investment management company registered in the Cayman islands and owned by the Jeddah-based Dallah al-Baraka Group. At the end of the financial year to February 1995, Al Tawfeek reported profits of $25.6 million, 21 per cent lower than a year earlier. This was mainly due to a drop in revenues from its securities and real estates portfolios. Earnings from the securities portfolio fell by 36 per cent to $5.3 million, and revenues from real estate investments were 37 per cent lower at $5.5 million. However, Al Tawfeek reduced its expenses by 32 per cent to $6.1 million.
Total assets rose 5 per cent to $392 million, while shareholders’ equity fell by 5 per cent to $316 million.